In the above figure showing a perfectly competitive firm's total revenue line, the firm's marginal revenue
A) falls as output increases.
B) does not change as output increases.
C) rises as output increases.
D) cannot be determined.
B
Economics
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Why do prices have to be based on supply and demand, rather than cost?
A) Costs, unlike supply and demand, are based on subjective factors. B) People cannot be compelled to base prices on costs C) People should be free to set whatever prices they prefer. D) Supply and demand determine costs. E) Because basing prices on costs is less efficient than basing prices on supply and demand.
Economics
Firms in long-run perfect competition produce at
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) no returns to scale.
Economics